07:53 AM EST, 03/08/2024 (MT Newswires) -- Canaccord Genuity Group Inc. ( CCORF ) overnight Thursday said that it plans to raise gross proceeds of $110 million by issuing convertible unsecured senior subordinated debentures via a non-brokered private placement to two institutional investors.

The offering is expected to close by March 15.

The debentures will bear interest at a rate of 7.75% per annum, payable semi-annually on the last day of June and December each year starting June 30, 2024. The debentures will be convertible at the holder's option into common shares of the company, at a conversion price of $9.68 per common share. The debentures will mature five years from the date of issue and may be redeemed in certain circumstances, by the third anniversary of the issue date.

Canaccord Genuity Group ( CCORF ) plans to use about $80 million of the proceeds to provide an interest-bearing loan to an independent, limited partnership to be owned by certain employees of the company.

The partnership will be a long-term ownership vehicle for senior employees of the company and will use the loan proceeds to buy about 9.9 million outstanding common shares in a private transaction to be completed contemporaneously with the closing of the private placement.